Goldman joins Wall Street chorus warning about possible U.S. FX intervention
“There may be some wrinkles to consider with intervention, Cahill wrote. While the Treasury and Fed have typically contributed equal amounts in past episodes, if the Fed chooses not to participate it would ‘substantially limit’ the potential scale, he said. Treasury’s Exchange Stabilization Fund holds roughly $22 billion in greenbacks and around $50 billion in special drawing rights that it could convert.”
USAGOLD note: One would have to think that if the White House decided to intervene in the market to drive the dollar lower, it would do so with assistance of the Federal Reserve. With the Fed, the intervention has no boundaries. Without it, the markets – not to mention China, Japan, Europe et al – would likely wait for the Treasury to run out of bullets. . . . .